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ZENITH International Journal of Business Economics & Management Research
Year : 2020, Volume : 10, Issue : 1
First page : ( 7) Last page : ( 15)
Online ISSN : 2249–8826.

Enhancing SMEs firm performance through innovation capability

Dr. Singh Daljeet1, Singh Malkeet1, Dr. Hanafi Norshafizah Binti2

1Owner/Director, Acuity Business Solutions, No. 34, Jalan 1/154A. Taman Bukit Anggerik, 56000, Taman Anggerik, Cheras, Kuala Lumpur. E-Mail: dsgill@acuity.my

2Senior Lecturer, University Utara Malaysia, No. 41-3, Jalan Raja Muda Abdul Aziz, Kampung Baru, 50300, Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur. E-Mail: norshafizah@uum.edu.my

Online published on 11 February, 2020.

Abstract

The aim of this research is to examine the relationship between innovation capacity (IC), and firm performance (FP) among SMEs within the state of Selangor, Malaysia. A total of 150 firms responded for the research study. This research utilized the Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish validity and reliability of measurement model and test the relationships. The results indicated a significant and positive relationship between innovation capability and performance of firms. Owner-managers of SMEs must lay emphasis on innovativeness to ensure enhanced firm performance and growth.

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Keywords

Innovation, capability, mortality, SMEs‟ Performance, Malaysia.

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